CANADA STOCKS-TSX drops as energy shares weaken with oil price

Mon Jan 12, 2015 11:15am EST
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* TSX down 149.60 points, or 1.04 percent, at 14,235.32

* Nine of 10 main index sectors decline

* Gold-mining shares climb with bullion price

By John Tilak

TORONTO, Jan 12 (Reuters) - Canada's main stock index dropped on Monday as oil prices dropped after Goldman Sachs cut its forecast for the commodity, sending down shares of energy companies.

The price of oil, which has been pressured by concerns about excess supply, reached its lowest since early 2009. Energy shares are down 41 percent since June.

The benchmark TSX neared its weakest level in nearly 4 weeks, with nine of the 10 major sectors on the index trading in the red.

"Oil doesn't seem to be able to find any point where it can stop falling. We really have to see the price of oil consolidate somewhere," said David Cockfield, managing director and portfolio manager at Northland Wealth Management.

"The TSX is going to continue to flounder until we see some light at the end of the tunnel as far as the oil stocks and oil prices are concerned," he added.   Continued...